Page 22 - Summer 2024

Accelerate:
Dealerships Consolidation, Talent, & AI

Explore dealership industry trends in consolidation,
talent opportunities, and AI considerations.
By Forvis Mazars

Explore dealership industry trends in consolidation,
talent opportunities, and AI considerations.

Consolidation & M&A Implications for Dealerships

Many would say that consolidation and M&A activity are the peak topics for the dealership industry
across auto, machinery and equipment, commercial truck, and recreational niches. Reports from those
in the industry show that M&A activity continues to stay much higher than pre-pandemic levels, leading
to overall consolidation.

Succession Planning Considerations
Dealers are looking to succession planning for their dealership group, whether that’s a transfer to the
next generation or an external sale. Auto dealerships are currently undergoing a slew of transactions,
and while machinery and equipment dealers face stricter guidelines from original equipment
manufacturers (OEMs) on owning multiple brands, they’re looking into diversifying into other niches,
such as commercial trucks. In the past, recreational dealerships may not have stood out in the face of
consolidation, but we’ve recently seen an increase in deals there as well.

Due to the consolidation of the industry, dealers may want to consider stopping and reflecting on where
22 they see their dealership in the next 10 to 15 years. While 10 to 15 years may seem far down the road, it’s
pertinent to plan now to understand future impacts and consider a suitable succession option from a
financial and operational standpoint.

At a high level, there are two options when considering the next step for your dealership: 1) transferring
ownership internally or to existing management or 2) selling externally. Both of these options come with
various financial impacts.

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